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CC - Item 4E - Approval of Purchase Order - Transit Buses E M 0 ` ROSEMEAD CITY COUNCIL CIVIC PRIDE STAFF REPORT /NCDRPORAT��9 TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER N DATE: APRIL 14, 2015 SUBJECT: APPROVAL OF PURCHASE ORDER — TRANSIT BUSES SUMMARY The City's public transit program offers both a fixed route bus system, the Rosemead Explorer, and a curb to curb Dial-A-Ride service for individualized transportation needs. These services are provided by Southland Transit, Inc. under a contract that is set to expire June 30, 2015 and staff is developing a request for proposals (RFP) for transit operation services. Under the current contract, the transit operator provides the transit buses as a complete turnkey public transit program. Through the RFP development process staff has determined that having the contract operator provide the transit buses at the City's expense is not the most economical approach as the City pays for the cost of the buses and interest for over the contract duration, yet does not maintain the residual value of the buses. Based on discussions with other municipal transit providers it is apparent that the practice of cities furnishing transit buses to the contract transit operator has become the norm in the industry. The City frequently purchases fleet vehicles through a negotiated State General Services Contract whereby a small agency, like the City of Rosemead, can recognize pricing typically reserved for large volume purchases. The California Association for Coordinated Transportation (CaIACT) similarly negotiates these purchase agreements for the procurement of transit buses. Creative Bus Sales, the approved CaIACT vendor, has prepared quotations for the purchase of five transit buses, which will maintain the City's current level of service, under the negotiated sales contract. The funds to be used for the purchase of the transit buses will be drawn from the City's Proposition A transportation allocation as part of the 2015-16 Fiscal Year budget process. Staff Recommendation It is recommended that the City Council authorize the purchase order for five transit buses from Creative Bus Sales per specifications and quotation obtained through CaIACT. DISCUSSION The City's transit services operate with the use of five buses on a daily basis. In evaluating the current contract and recent contracts for other cities, it has been ITEM NUMBER: Lke City Council Meeting April 14,2015 Page 2 of 2 awarded transit contracts. By purchasing the buses outright, cities recognize savings on payments and interest and maintain useful life of the buses beyond the standard term of transit services contracts. The City of Rosemead's purchasing code limits contracts to a maximum duration of five years; however, transit buses have a useful life of seven to ten years. As a result, the City, historically, has not recognized the complete useful life on buses as they have been the property of the contract provider at the conclusion of the contract. Under the proposed purchase and RFP for transit services that is being drafted, the City would acquire the buses and maintain ownership. The transit operator that is selected would be responsible for the operation and maintenance of these buses as though they were owned by the company. As the City would own the buses, they could be transferred to a new operator at the conclusion of the next five year contract. Additionally, by maintaining ownership of the buses, the City would be eligible to apply for grant funding in the future, through Metro or other funding sources, to acquire eventual replacement buses. The ability to obtain grant funding to offset these transit operation expenses is a key component to stretching the City's Proposition A, Proposition C and Measure R funds in the future. While Proposition A funds may only fund public transportation operations, excess Proposition C or Measure R funds could be expended for other transportation improvement projects throughout the City. FINANCIAL REVIEW Funding for the proposed purchase would come from Proposition A funds in the 2015-16 fiscal year and all necessary appropriations will be part of the regular budget adoption process. The City's transit operations are funded through Proposition A, Proposition C, and Measure R funds, all of which are transportation taxes included in Los Angeles County Sales Tax. ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (C) of the CEQA Implementing Guidelines. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted By: Matthew E. Ha esworth Assistant City Manager/Acting Director of Public Works Attachments: Creative Bus Sales Quotations l • Creative Bus Sales 13501 Benson Avenue, Chino, California, 91710 March 2, 2015 Fixed Route Bus Creative Bus Sales Proposal for City of Rosemead (Bus photo is not to exact specifications.) CaIACT Type C-Gasoline Cutaway ADA Bus 16-Ambulatory Passengers+2-Wheelchair Positions or 20-Ambulatory Pricing based off of CaIACT/ MBTA Vehicle Purchasing Cooperative • Purchase Requires Membership to CaIACT and Payment of Procurement Fee • Delivery Timeline: 90 to 120-Days • Starcraft Allstar Cutaway Bus • 2015 Ford E450 Cutaway Bus with 6.8L V10 Gasoline Engine/ No Radio • Braun Century Wheelchair Lift (Rear) • Restraints: Q-Straint 8100 Deluxe with Knobs (2) • Flooring: Altro Dark Grey • Seats: Docket 90 Vinyl- Grey • Standee Line: Yellow • Bus Comes Equipped with All Standard CaIACT Equipment (Please see attached) From the office of Steve Chung Cell 909.549.9398 / Office 800.326.2877/ Fax 909.465.5529 stevec @creativebussales.com www.creativebussales.com • Options: • (1) 2-Position Bike Rack: $1,937.00 • (1) Wheelchair Lift Cover: $350.00 • (1) Stop Request System: $1,275.00 • (1) PA System with Exterior Speaker: $655.00 • (1) TwinVision Mobilite Front and Side LED Signs: $4,589.00 • (1) Thermo King SLR-65 Roof Mount Air Conditioner: $4,185.00 • (1) Decal Allowance: $2,000.00 • (2) Double Fold Away Seats: $2,142.00 • (2) Double Flip Seats: $1,928.00 • Subtotal: $19,061.00 • Pricing: • Base Price: $52,082.00 • Total Options: $19,061.00 • Documentation Fees: $80.00 • Subtotal: $71,223.00 • Non-Taxable ADA Items: $14,850.00 • Taxable Amount: $56,373.00 • Sales Tax 9.00%: $5,073.57 • CaIACT Procurement Fee 1.5%: $1,068.35 • DMV Estimated Fee: Exempt • DMV Electronic Filing Fee: $29.00 • Tire Fee: $12.25 • Delivery Fee: N/C • Total Cost Per Bus: $77,406.17* *Please note that above pricing is valid until 3/22/2015. Pricing is subject to PPI increase on 3/23/2015 per CaIACT/ MBTA Purchasing Cooperative Agreement. From the office of Steve Chung Cell 909.549.9398/ Office 800.326.2877/ Fax 909.465.5529 stevec @creativebussales.com www.creativebussales.com Qg ght Or4X61rv, ON 1! rAR--.143 %li* i r -: zdi, ,-,-, Z �i r � r T k_ .-.5 , ,..:..:::::::::::::.:::.: -- , i . i , i A = 1 1 1� CD �r 1 I E o_ _.--. ,-,.°) ••,,- 1 m CD o: W _ rn 1 E .. CD • O Q O C I> m fL. .—_TL 1 1 rte/ E o D D C) -0 W d �; d w m o ID Cn 1- 0 0 m `0 3 A m m . ;{7 D Tl^a 0- iL0 a w __ ---. - w ∎p t E 0 El R Z 0 0 i D < E E —1 D o O O O A , // O O / 1 1+ I+ I+ FFFIII 1 1 1 _+ UI UI p ® vl) I D n , !jam/���� g A Z Nc Z �•��,' d W �� ZD 0 l. ,� r=i r /// /� 1 m 5. 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CaIACT Class B- Gasoline Cutaway ADA Bus 12-Ambulatory Passengers +2-Wheelchair Positions or 16-Ambulatory Pricing based off of CaIACT/ MBTA Vehicle Purchasing Cooperative • Purchase Requires Membership to CaIACT and Payment of Procurement Fee • Delivery Timeline: 90 to 120-Days • Starcraft Allstar Cutaway Bus • 2015 Ford E450 Cutaway Bus with 6.8L V10 Gasoline Engine/ No Radio • Braun Century Wheelchair Lift (Rear) • Restraints: Q-Straint 8100 Deluxe with Knobs (2) • Flooring: Altro Dark Grey • Seats: Docket 90 Vinyl- Grey • Standee Line: Yellow • Bus Comes Equipped with All Standard CaIACT Equipment (Please see attached) From the office of Steve Chung Cell 909.549.9398/ Office 800.326.2877/ Fax 909.465.5529 stevec @creativebussales.com www.creativebussales.com • Options: • (1) Wheelchair Lift Cover: $350.00 • (1) Thermo King SLR-65 Roof Mount Air Conditioner: $4,185.00 • (1) Decal Allowance Per Bus: $2,000.00 • (2) Double Foldaway Seats: $2,142.00 • (2) Double Flip Seats: $1,928.00 • Subtotal: $10,605.00 • Pricing: • Base Price: $48,648.00 • Total Options: $10,605.00 • Documentation Fees: $80.00 • Subtotal: $59,333.00 • Non-Taxable ADA Items: $12,920.00 • Taxable Amount: $46,413.00 • Sales Tax 9.00%: $4,177.17 • CaIACT Procurement Fee 1.5%: $890.00 • DMV Estimated Fee: Exempt • DMV Electronic Filing Fee: $29.00 • Tire Fee: $12.25 • Delivery Fee: N/C • Total Cost Per Bus: $64,441.42* *Please note that above pricing is valid until 3/22/2015. 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